Lead Opinion
This case presents the question whether equitable estoppel may be applied against a government employer based upon the employer’s oral assurances to the employee of coverage under the Family and Medical Leave Act (“FMLA”), 29 U.S.C. § 2601 et seq. (2006). The employer denies both the alleged assurances and the claim that the employee was terminated for taking leave; but because the employee’s case
At the time of the events, Kathleen Nagle had been working since the year 2000 as a part time employee in the position of school monitor for the Acton-Boxborough Regional School District in Massachusetts. On January 12, 2004, Nagle requested leave under the FMLA in order to tend to her ailing husband. The FMLA entitles eligible employees to take twelve weeks of unpaid leave during any twelve-month period to care for a family member who is seriously ill. See Engelhardt v. S.P. Richards Co., Inc.,
To be eligible for FMLA leave, an employee must have worked at least 1,250 hours in the 12-month period before taking leave. 29 U.S.C. § 2611(2). Nagle was not eligible; in the 12 months prior to her request, she had worked only 554 hours. However, she asserts that George Frost, the district’s deputy superintendent, told her that she could take FMLA leave. Frost says he told Nagle she was not eligible but could take non-FMLA leave with continued health insurance, but, on the motion for summary judgment against her, her version governs. Nagle took leave until April 2004, writing Frost in March to thank him for allowing her to take FMLA leave; it appears no answer was ever made to the letter.
In February 2005, Nagle took several days off to care for her husband and she says that the principal’s assistant at her school suggested to Nagle that she take family medical leave. Nagle requested FMLA leave in a letter dated February 18, 2005, but does not claim to have received a reply, and then took off eight weeks of leave. In March 2005, Nagle says she thanked Frost for granting her FMLA leave and that he never explained that she was not entitled to FMLA leave. Frost disputes this as well; again, Nagle’s account must be assumed.
Once Nagle returned to work in April 2005, she says she met again with Frost who told her that additional FMLA leave was available if necessary, and after her husband reentered the hospital, she again in early May 2005 took what she believed to be FMLA leave. Nagle’s husband died at the beginning of June. She says that she was told not to worry about rushing to return and that Frost told her that she had “nothing to worry about.” No writing from Frost confirms these assurances, but we assume that they occurred.
The school year ended in June 2005. On July 12, 2005, Nagle’s employment with the school district was terminated. Nagle concluded that this was because she had taken leave and in August 2007, Nagle filed suit against the school district for violating the FMLA. 29 U.S.C. § 2615(a)(1). The school district countered that Nagle was not eligible for FMLA leave and that her job ended because the district had completed construction work on a new building and no longer needed monitors in the parking lots.
In due course, the school district moved for summary judgment on the ground that Nagle was not eligible for FMLA leave and as a result had no claim. She responded that the school district was es-topped from relying on her lack of eligibility because of Frost’s alleged assurances and that it had taken her leave into account in terminating her position. After further briefing the district court refused to apply estoppel against the school district and granted summary judgment in its favor.
Nagle now appeals, and the central issue — whether equitable estoppel is avail
Where an employee properly takes FMLA leave, the employee cannot be discharged for exercising a right provided by the statute, but can still be discharged for independent reasons. Kohls v. Beverly Enters. Wis., Inc.,
Nagle does not claim that she was in fact eligible for FMLA leave, but she argues that the school district is estopped from denying coverage. The contours of equitable estoppel doctrine, where directed against a private party, are conventional. The doctrine seeks to prevent injustice when an individual detrimentally and predictably relies on the misrepresentation of another. Mimiya Hospital, Inc. SNF v. U.S. Department of Health & Human Services sums up the doctrine thusly:
[A] party seeking to assert estoppel must demonstrate that (1) the party to be estopped made a “definite misrepresentation of fact to another person having reason to believe that the other [would] rely upon it”; (2) the party seeking estoppel relied on the misrepresentations to its detriment; and (3) the “reliance [was] reasonable in that the party claiming the estoppel did not know nor should it have known that its adversary’s conduct was misleading.”
If the school district were a private employer, Nagle would be entitled to a trial as to whether Frost did misrepresent matters, as to her reliance and on the reasonableness of any such reliance — the last being a “mixed” question that is at bottom normative but is regularly given to a jury where the matter is reasonably debatable. See Grande v. St. Paul Fire & Marine Ins. Co.,
But under federal precedent, governments in the past have not been subject to estoppel or, more recently, have been held not subject to estoppel, save exceptional situations that we have called “hen’s-teeth rare,” Costa v. INS,
As with sovereign immunity, Congress has made exceptions but, in the case of estoppel, the exceptions are far narrower and more sporadic than the categorical limitations in the Federal Tort Claims Act, 28 U.S.C. § 2680 (2006).
The Supreme Court has been very cautious in language, and even more cautious in practice, about extending estoppel to the government. It has said, but only in a dictum, that “affirmative misconduct” by the government can lead to estoppel, Heckler,
Tellingly, the Supreme Court’s most recent pronouncement, in Richmond, is a step back from Heckler’s dictum; in Richmond, the Supreme Court once again rejected a claim of estoppel against the government on the ground that it would undercut the policy of the statute in question.
This court, too, has not quite closed the door to exceptions but has repeatedly refused to apply estoppel against the government in ordinary situations where a private party would or might have been estopped.
Statutes of limitation are a special case because allowing an out-of-time law suit
Nagle’s case is hardly unsympathetic. Her husband was sick and, by her account, she was several times assured by Frost that she could have FMLA leave. Justice Jackson, a model of humane good sense, made the classic argument in favor of estoppel where the citizen relies on official statements, Fed. Crop Ins. Corp. v. Merrill,
Governments have many “agents,” who may or may not have authority to speak for the government in the matter at hand and whose casual representations are hard to control. Anyone can claim, without any confirming proof, that some official or clerk misinformed the person about his or her legal rights. Further, the public has a general interest in having the same rules enforced against everyone; affording special treatment to someone who was misinformed creates special treatment, burdens on others or both.
Nagle is not asking to engage in prohibited conduct; this ease is essentially about money. But, although the amount here is probably small, it could in other estoppel cases be very large; and small claims— many perhaps sympathetic — can add up to a great deal. As the Supreme Court explained in Richmond,
To open the door to estoppel claims would only invite endless litigation over both real and imagined claims of misinformation by disgruntled citizens, imposing an unpredictable drain on the public fisc. Even if most claims were rejected in the end, the burden of defending such estoppel claims would itself be substantial.
Richmond, although in tone a retreat from Heckler, repeats Heckler’s earlier dictum about the need to show “affirmative misconduct”; but that phrase has usually been taken to mean something more than careless misstatements, see, e.g., Dantran,
By her own account, Nagle has nothing in writing from Frost or other officials to confirm that any such representation was made to her. A prime danger in applying estoppel to the government is the prospect of he said-she said trials as to whether an alleged oral statement was ever made. Heckler itself made this point.
Finally, assuming that Nagle did not know that she was far below the minimum hours needed for FMLA leave, Nagle plainly recognized some potential problem with her ability to get such leave: nothing else explains her actions. She also knew that she had nothing in writing: she wrote letters assertedly confirming oral statements that are otherwise undocumented
Some mechanism should exist for employees to get rulings on whether they are entitled to FMLA leave; and regulations under the existing statute, recently strengthened but after the events in this case, now require employers to provide written rulings on request. See 29 C.F.R. § 825.300(d) (2009). Neither side claims that the present regulation applies to this case, but the regime underscores the utility of insisting upon a writing and suggests that statutory or administrative solutions can be crafted.
If Richmond had come out the other way, Heckler’s dictum might be taken to presage a new approach by the Court, entitling lower courts to develop the beachhead. That result would have its attractions, laid out by Justice Jackson, although estoppel is a crude tool for making the needed policy choices and marking out limits. But allowing estoppel here would be tantamount to allowing it in the mine run of cases. Supreme Court precedent, and our own, forbid this course.
Affirmed.
Notes
. The claim is made under a federal statute and could be affected by federal regulations, so federal estoppel law could well govern in the interests of uniform application. Further, Massachusetts precedent, like federal precedent, is at best hesitant in applying estoppel against governmental units. See, e.g., Morton St. LLC v. Sheriff of Suffolk County,
. See, e.g., Office of Personnel Mgmt. v. Richmond,
. See, e.g., Federal Trade Commission Act, 15 U.S.C. § 57b-4(b) (2006); Truth in Lending Act, 15 U.S.C. § 1640(f); Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1028.
. Compare Richmond,
. Dantran, Inc. v. U.S. Dep’t of Labor,
Dissenting Opinion
dissenting.
The majority opinion follows a familiar path: it acknowledges the precedent permitting the use of estoppel against the government in exceptional circumstances, while rejecting its use in the case at hand. It bases this outcome primarily on concerns that arise whenever the estoppel doctrine is invoked in a government context. If the exception is not to be a false promise, however, it cannot be rejected for reasons that will be present in every case. Moreover, Nagle’s claim avoids some of the concerns typically associated with estoppel against the government. Most importantly, her claim is compatible with government policy. In addition, it is based on more than “casual representations.” Because these distinctive factors in combination place Nagle’s claim outside the “mine run” of estoppel cases against the government, summary judgment is inappropriate. I therefore respectfully dissent.
I.
The problems related to the use of equitable estoppel against the government are real, and there is good reason to hesitate before applying the doctrine in that context. An impact on the public fisc is virtually inevitable, even if the cost is only in defending estoppel claims. See Office of Personnel Mgmt. v. Richmond,
I do not minimize the importance of these problems, particularly the potential financial drain on public funds. But if they provided reason enough to bar estoppel against the government, we would never recognize such a claim. Moreover, “special treatment” is the very premise of the estoppel doctrine: the plaintiff seeks a remedy for individualized harm caused by the defendant’s misrepresentations. What matters is the nature of the special treatment at issue.
In Richmond, the Supreme Court similarly emphasized that the plaintiff sought to use estoppel to obtain a remedy — the payment of disability benefits — that would not only be “in direct contravention” of the statute on which his claim to relief rested but would also violate the Appropriations Clause of the Constitution.
Nagle’s claim, however, does not fit this usual mold. Allowing her to invoke estoppel against the government would not undermine the policy of the act whose limitations she seeks to avoid. The Family Medical Leave Act (“FMLA”) is designed, inter alia, to protect the continued employment of individuals — like Nagle — who need time away from their jobs to help family members confronting serious illnesses. See 29 U.S.C. § 2601(b)(2) (stating that the Act’s purposes include entitling “employees to take reasonable leave for ... the care of a child, spouse, or parent who has a serious health condition”).
The majority recognizes that the estoppel issue requires a balancing of competing interests, with the plaintiffs “claim of honest reliance” on one side of the scale and, on the other, the government’s “justified concerns to assure enforcement of the law, about the lack of authority by officials to vary it, and about the prospect of spurious law suits.” The majority fails to take into account, however, that the government’s concerns have considerably less weight in cases where the estoppel would not undermine the public interest reflected by the law. Cf. Ven-Fuel,
In advising Nagle that she could take FMLA leave, the school district effectively told her that she would not be penalized for taking a family medical leave. She is thus seeking performance of a promise that her leave would not be factored into decisions about which employees to terminate. There would be nothing untoward about requiring the district to follow through on its assurances of FMLA-“type” protection — notwithstanding the statute’s eligibility requirements — because no law or policy forecloses the district from making such a promise.
Our precedent holding that estoppel against the government is “hen’s-teeth rare,” Costa v. INS,
II.
Opening the door more widely to estoppel claims that are consistent with government policies will not trigger a flood of spurious lawsuits. That consistency will not be commonplace. Many low-stakes claims will never be brought because of the high cost of litigating them. In addition, as the majority points out, our case law already incorporates a limiting principle through the special requirement of affirmative misconduct. See Ramírez-Carlo v. United States,
The Court in Richmond raised the specter of “endless litigation” as one of the “pernicious effects” that may result from “acceptance of estoppel claims for Government funds.”
In rejecting Nagle’s attempt to rely on the estoppel doctrine, the majority emphasizes that she has no written confirmation of Deputy Superintendent Frost’s assurances that she could take FMLA leave to care for her ailing husband. It observes that the absence of such evidence leads to the “prime danger” of “he said-she said” trials resulting from casual comments. A wide spectrum of circumstances exist, however, between an explicit written confirmation and “casual representations” that might be insufficient, as a matter of law, to state a meritorious claim of estoppel against the government.
Nagle’s case does not rest on offhand comments. She sent a thank-you letter for her FMLA leave, identifying it as such, to the very person who she claims made the representations on which she relies. In a large bureaucracy, there could be
III.
The permissible use of estoppel against the government remains an undeveloped and uncertain area of the law. The Supreme Court in Richmond noted that it had “reversed every finding of estoppel that we have reviewed,” despite “dicta in our more recent cases ... suggesting] the possibility that there might be some situation in which estoppel against the Government could be appropriate.”
. The Court in Richmond expressly left "for another day whether an estoppel claim could ever succeed against the Government” because "a narrower ground of decision is sufficient to address ... a claim for payment of money from the Public Treasury contrary to a statutory appropriation.”
. The statute as a whole was designed to address "gender-based discrimination in the administration of leave benefits.” Nevada Dep’t of Human Res. v. Hibbs,
. I realize that the Congressional cutoff for FMLA eligibility — 1,250 hours worked in the preceding twelve months — is the product of a deliberate compromise that balances the needs of employees and their employers. See 29 U.S.C. § 2601(b)(3) (noting that the Act is designed to accomplish its purposes "in a manner that accommodates the legitimate interests of employers”). But the explicit provision allowing more generous benefits under state and local law forecloses an argument that allowing estoppel here would contravene the federal law.
. We have previously found a plaintiff's reliance on a government spokesman's representations to be unreasonable on the ground that " 'those who deal with the Government are expected to know the law and may not rely on the conduct of Government agents contrary to law.’ " Falcone v. Pierce,
. We have said that " '[a]ffirmative misconduct ... require[s] an affirmative misrepresentation or affirmative concealment of a material fact by the government, although it does not require that the government intend to mislead a party.’ ” Ramírez-Carlo,
